Credit Fixes

Chane Steiner asked:


It seems that everyone in America has one type of credit problem or another. We all need to learn how to fix credit problems because our society revolves so much around credit-based situations. Even if you have a superior credit score, you can watch it drop by 100 points just for missing a single payment – or even making a late payment! The credit realm is definitely cut-throat and it isn’t going to suddenly get easier to handle. There’s good news though! There are methods that you can use to fix credit problems. Let’s look at 5 hot ones now:

#1: Start making your payments for everything that you are responsible for on time. Pay your bills in full and do it every time that they come due. The scoring algorithms that have a direct affect on the happiness that we experience love to see timely payments. They do not appreciate late or missed payments whatsoever, and they have no problem showing you that by dropping your precious credit score overnight!

#2: Keep your credit cards at a maximum charge level of 30% and pay them off in full every month. The second most important variable in your scoring algorithm is based upon the difference in the amount of credit that you could use as compared to the amount of credit that you actually do use. Keeping the charge levels low shows restraint and responsibility. That’s what the algorithms like – nobody ever said they were any fun!

#3: Dispute any and all negative items that show up on your credit reports. It is your right to do so and it is the responsibility of the reporting agencies to verify all disputed claims with the creditor that placed them on your report. This is an integral component in your overall strategy to fix credit problems that you may have. If the disputed items cannot be or are not verified within a reasonable time period (normally 30 to 45 days), then they must be removed from your credit report. This is definitely worth doing as it has been shown that as many as 79% of all credit reports contain some degree of inaccurate information. If you do not dispute negative items, they will remain there indefinitely.

#4: A leveraging method to fix credit problems involves having somebody with excellent credit add you as an authorized user on one or more of their credit accounts. The algorithms raise your credit score because they see that the person with the excellent credit had entrusted you. Alternatively, but equally effective, is to have someone cosign a loan for you.

#5: When all else fails – if your credit is just horrible, you can still fix it, but it will require some patience. You can fix credit problems in extreme circumstances by filing for bankruptcy. That’s what the bankruptcy laws and courts are there for. Sometimes, people need a second chance in their financial lives. After you file, you are going to have to wait a while for any credit to be granted to you again. However, sometimes a bankruptcy is the best option available.

Ryan Cote asked:


If you have ever had credit cards, paid a bill monthly, or obtained a loan, you have a credit rating. When you make payments to a creditor, they report these payments to credit reporting agencies that compile your credit report and track your credit history. If you miss a payment, or even worse, your debt gets sent to a collection agent, this affects your credit rating negatively, and may prevent you from obtaining more lines of credit when you need them in the future.

As soon as you realize you are in this situation, it is crucial that you immediately begin to make an effort to repair your credit rating. To most people, this seems like a difficult thing to do, but doing nothing to repair your credit will only prolong the damage for up to seven years. Until your credit is better, you will find that you are barred from any type of loans or even activities that require credit, such as renting a car.

One way to repair your credit is to obtain a secured credit card. You may wonder how this is possible with bad credit, when you will most likely be declined when filling out a credit card application. However, without a credit card, you will have a hard time proving to creditors your responsibility in making payments on time.

Try a secured credit card. Secure credit cards are marketed specially toward individuals with poor credit. These credit cards work when the customer applies a deposit equal to their credit limit. For example, if you make a deposit of $100, your credit limit will be $100. The credit card company then be use your deposit toward any balance on the credit card resulting from late payments.

This type of credit card is risk-free for the company that issues it, because they can always deduct the balance from your deposit, so it makes sense to issue these cards to people with poor credit. One drawback to secured credit cards, however, is the annual fee that most regular credit cards don’t charge.

After you have obtained one of these secured credit cards, use it sparingly but regularly, and make sure you mail all of your payments on time. This will enable you to slowly, but surely, repair your credit. You will demonstrate to your creditors that you are trustworthy, responsible, and pay your bills on time.

Taking steps towards repairing your credit will eliminate the risk of keeping your credit rating “poor” for up to seven years. However, after seven years the black marks on your credit will finally be taken off, so waiting is always an option. If waiting is not an option, take the necessary steps toward credit repair. Obtain your secured credit card, use it responsibly, and reduce the seven-year sentence of bad credit.

azkoolchik asked:


I have a credit score of 700 and wanting another credit card. I was thinking about citi bank or bank of america. What one should I get? I only have one other credit card from Wumu. I want a credit card that report to the 3 credit bureaus every month. Anyone has either one of these cards, if so, what one did you like and why?

Ryan Cote asked:


Credit is a necessary tool for many people’s day-to-day lives. Good credit allows for many advantages that we sometimes take for granted: credit cards, the ability to rent an apartment, qualifying for financing or a car loan, and that’s just the beginning. If you fall behind in payments towards a creditor, each incident will be reported to your credit bureau, end up reflecting badly in your credit rating, and make the credit-dependent activities above difficult If not impossible. If you have a poor credit rating, steps to repair it should begin as soon as possible.

Credit repair is not a quick process, and requires you to build a better rating over time. Here are some steps to get you started:

1. Add Accounts to your Credit Report.

If you apply for credit and are denied, you should immediately get a copy of your credit report from the credit bureau who denied you. When you receive the report, examine it closely for any errors. If the report reflects no errors, you may realize that the only reason your credit rating is “poor,” is because you don’t have enough credit history to give you a good rating.

Some types of credit, like gas cards or department store credit cards, may not be tracked by credit bureaus. However, as long as the credit bureau can verify that the account is legitimate, most credit bureaus can add it to your account for a fee. By adding these accounts to your credit report, and paying them regularly, you can begin to establish a better credit rating.

2. Seek Credit Counseling.

Once you’re mired in debt, bad credit can become a vicious circle that it’s difficult to escape from. If you see yourself being drawn into the bad credit-cycle, consider credit counseling. Not to be confused with credit repair companies, a credit counselor is usually a non-profit service that offers advice and guidance for individuals trying to repair their credit. Credit repair companies operate for-profit and sometimes have dubious ethics. They generally charge fees for doing things that with a little bit of knowledge, you can easily do of yourself. A good credit counselor helps you create a realistic budget – and stick to it – as well as make practical decisions in regards to your current credit situation.

By adding accounts already in good standing to your credit report and seeking help from a credit counselor if necessary, you will begin to make headway in the credit repair process. It is important to remember that a good credit rating takes a long time to build, but only a very short time to damage. There is no quick-fix for bad credit: you will have to work on building your credit rating up, sometimes from scratch. Avoid credit repair companies that falsely promise quick and easy solutions for a fee, and instead try to make long-term changes to your budget and spending habits. Follow these steps, give it time, and you will be successful in repairing your credit.

Mark Henry asked:


It is possible to fix your bad credit, with time, patience and determination. The first step in repairing poor credit is fixing any problems you may have with money.

1) Get a credit reports on yourself and check out what is on them. To get yours free go to www.annualcreditreport.com. You are allowed by U.S. law to get a free copy from each of the three major credit companies once every 12 months.

2) Once you have your credit reports, check them for accuracy. If there are any errors or things you disagree with, you are entiltled by the Fair Credit Reporting Act law to dispute anything in the report that is not accurate. Write to the credit reporting company and explain what the problems are. They will then investigate the matter and let you know what happens. If they find the information is not accurate, they will fix that on your credit report.

Unfortunately you can’t remove anything negative that is accurate information about you. Only time can do that. But adding more good information does help.

3) If your credit needs repair, start work on it now. Start paying off old unpaid debts and loans, starting with the smallest ones.

4) Start paying more than the minimum payment on your current credit card payments.

5) Do not get into any new debt. This is essential. Make it a priority to get out of debt. Cut up (or lock up) the credit cards, if they are a problem for you. Make it a commitment to become debt free.

6) Live within your means. Make a budget and live by it.

7) Start saving money. If you have poor credit, it is much easier to buy a home or a car with a cash down payment, than without one.

There are many sources of help available. Consumer Credit Counseling Service is one of the best for help repairing credit and getting debt under control. Their website is located at http://www.creditrepairsoft.com. Consumer Credit Counseling Service provides budget counseling, educational programs, debt management assistance and housing counseling. There are also many local branches of this nonprofit organization, so check for one near your location.

There are many “for profit” organizations that will help you with debt consolidation loans, but beware! They often are very expensive. You can get free reliable help that you can trust from a non-profit organization like Consumer Credit Counseling Service instead of paying hundreds of dollars to one of them. Or, you can educate yourself and do it for free.

Some other good places to go online for more credit and financial advice are listed on my website at www.creditrepairsoft.com